GMA Commits P4.5B to Asean Emergency Fund

**chua_riwap** · March 2nd, 2009 03:08 AM

Bakit di na lang gamitin sa Pinas itong perang ito? Ganito na ba tayo kayaman, at handang mag-contibute ang Pinas ng $4.5B para sa Asean Emergency Fund? Daming nangangailangan ng tulong ngayon, daming natatanggal sa trabaho at naluluging negosyo...........

(Mods: Dapat pala $4.5B not P4.5B yung nasa title nung thread. Paki change na lang po.)

http://www.tribune.net.ph/commentary/20090302com1.html
The Daily Tribune
2 Mar 2009

Gloria Flaunts $4.5B

Finance Secretary Gary Teves must have allowed himself to sink into Gloria’s fantasy world of prosperity for committing $4.55 billion, $3.8 billion of which is to be committed “immediately” for a proposed $120-billion emergency fund for use of any members of the Association of Southeast Asian Nations and its dialog partners China, Japan and Korea (Asean +3) which gets into a financial quagmire as a result of a global slowdown.

Although a standby fund, the country will have the obligation of releasing the funds quickly when any of the group’s members fall into a deep financial crisis.

Teves, who is in Thailand to accompany Gloria for the Asean Leaders Summit, boasted that the Philippines has the capability to immediately commit its $3.8 billion, that’s about P178 billion, to the emergency fund.

The reason for Teves to quickly commit the amount was the fact that it was Gloria last year who spearheaded the setting up of the standby fund.

That would be committing a tenth of the country’s total foreign exchange reserves into the fund, thereby freezing the amount until any member of the grouping needs it.

The purpose is noble since most countries in Asia are brimming with foreign exchange with $1.76 trillion compared to the Philippine’s $37 billion.

The trouble with the arrangement was that Teves or Gloria may have not bothered to consult Congress in committing this amount, thus putting at a considerable risk, such huge financial resources of the country.

Gloria had claimed bragging rights of the country as being one of the few in the world that had not succumbed to a recession, which through the questionable statistical process in her government seems to guarantee it will never happen. For as long as Gloria and her economic managers fudge the data, there can never be officially, a recession, even if the country may already be in one.

Recall that one time when we were headed for a recession, and then Neda Chief Romulo Neri claimed that we were saved from being in a recession through a fraction, which was no doubt fudged too.

The Filipinos are mired in poverty, and are forced to pay painful eVAT tax, yet there went the Arroyo government, lavishing money as if we were such a rich nation.

Teves took it a step further to make it look as though Gloria can put the money where her mouth is.

While not exactly a disbursement, committing $3.8 billion to the fund appears to be within the ambit of Congress’ responsibility, through its power of the purse.

Teves said the fund would come from China, Japan and Korea which will together shoulder 80 percent or $96 billion; Malaysia, Thailand, Indonesia, Singapore and the Philippines to equally contribute $4.55 billion each or a total of $22.75 billion while the remaining Asean member countries Vietnam, Laos, Myanmar, Brunei and Cambodia will equally share the remaining $1.25 billion or $25 million each.

Teves said that based on a burden sharing concept, the remainder of the committed amount of $4.55 billion or $87 million will be paid by the country to the fund over a certain period.

In her unflinching effort to assume the mantle of statesmanship Gloria clearly bit off more than she can chew and now to save face, the country would have to put in $4.5 billion of the country’s precious foreign currencies into the fund.

The least that Gloria and Teves could do would be to submit the country’s accession to the fund for Congress approval to allow discussions on it.

While indeed, Asean +3 is mainly an executive grouping, Gloria may have exceeded her functions in committing the huge amount to the fund without the assent of the legislature, the same way that the so-called P330-billion stimulus package that is largely unapproved by Congress except for P50 billion that was incorporated in this year’s budget.

The country’s foreign reserves are vital resources that needed at least a decent discussion before these are committed for other country’s use.

It is the nation’s property, not Teves’ nor Gloria’s.

**CVT** · March 2nd, 2009 09:01 AM

Iyan ang magaling nating Prisidinti!....

7606:mobile1:

**vito corleone** · March 2nd, 2009 09:18 AM

right on target:

"Gloria had claimed bragging rights of the country as being one of the few in the world that had not succumbed to a recession, which through the questionable statistical process in her government seems to guarantee it will never happen. For as long as Gloria and her economic managers fudge the data, there can never be officially, a recession, even if the country may already be in one."

talagang salot ng bayan

**ab_initio** · March 2nd, 2009 09:46 AM

thre's no way for her to feel that we are in recession because she is filthy rich...she has amassed and continue to amass wealth by any means during her 10 year stint (and beyond) in the palace. she won't be compassionate coz she has never walked on the pavements and get to see lots of her people in excruciating hunger pangs...homeles and hopeless. everything during her administration is just photo ops...that's where she's good at. who is she kidding? we've learned.